In a groundbreaking move, the Biden administration announced on July 15, 2023, that it will forgive $39 billion in student loan debt for 804,000 borrowers. Eligible borrowers have paid their loans for 20 years or more, been in forbearance, or faced credit issues.
Vice President Kamala Harris emphasized the administration’s dedication, stating, “President Biden and I commit to providing relief to student loan borrowers.” She pledged to continue ensuring all Americans access quality postsecondary education without crippling debt.
This forgiveness is a significant step in addressing the soaring $1.7 trillion student debt crisis. In addition, the Biden administration finalized an income-driven repayment plan. It will halve monthly payments for undergraduate loans.
The historic $39 billion forgiveness is a lifeline for struggling borrowers, enabling investments in families, homes, and businesses.
The administration’s efforts are a welcome relief for borrowers facing repayment challenges. This showcases a genuine commitment to addressing the student debt crisis and supporting financial aspirations.
The announcement is a major step forward in addressing the student debt crisis, which currently stands at over $1.7 trillion. The Biden administration has taken other steps to address the crisis, including finalizing a new income-driven repayment plan that will cut monthly payments in half for undergraduate loans.
The $39 billion in forgiveness is the largest single-day student loan forgiveness in history. It will benefit borrowers who have been struggling to pay their loans and were unable to get ahead financially. The forgiveness will also free up money that borrowers can use to invest in their families, homes, and businesses.